Low doesn't prohibit paying on 1099, but there is a difference between sub and employee. Otherwise this case would not be relevant. IRS defines clearly these differences. I use subs all the time, but I don't dictate them what and how they do. I do require quality work and warranty
and it isn't just P&P, not by a long shot. Just take a quick look down any employment or classifieds, and you will see "contractors" blatantly advertising for 1099 employees, and even outlining the job, clearly defining a position that fits the employee definition. Of course there is some tangential connection with some P&P company somewhere,in this case. The ruling in this case was based on overtime and minimum wage. This appears to be one of those private maid companies, that takes the van around and drops people off, and comes back for them at specific times, clearly that is a regular direction of work hours, and use of company equipment, and supplies. Hell there's a good chance there is a uniform. Here is their website http://www.supermaid.com/index.php?Page=Services
Not typically anything like you would find in the P&P world. I also use subs, but they are established private businesses, I also sub work from other contractor doing work from nationals, if they are willing to pay the rate and terms. We all know where the lines are, I did not specifically point my finger at anyone. My statement however is true, and you know it is true. The national companies for the most part are not the main abusers of this law, no way shape or form. It is the guy getting work from the nationals, and subbing it to some other Tom, Dick or Harry, and often Tom, Dick or Harry does not even have insurance or a license.. I see it all the time, and I'm sure you do too.